Sustained decline in gold
In the ever-evolving landscape of financial markets, understanding and analyzing price movements is crucial for traders seeking to make informed decisions. Gold, a traditionally sought-after asset, is currently experiencing a bearish phase, presenting both challenges and opportunities. This analysis focuses on the ongoing retest of a previously broken support zone in the gold price, highlighting its potential to act as a resistance zone.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The gold price has entered a bearish phase, marked by a sustained decline in prices. This shift in sentiment can be attributed to various factors, leading to a change in market dynamics. Currently, there is a significant retest of a previously broken support zone, which is expected to act as a resistance zone. Traders are advised to wait for confirmation of the bearish wave before considering short positions, as this retest provides valuable insights into market sentiment. Once the bearish wave is confirmed, traders can potentially profit from further price declines by entering short positions, but risk management strategies should be employed to mitigate potential losses. Overall, careful analysis and monitoring of the market are crucial for navigating the current bearish phase in the gold price.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.